Triple Candlestick patterns means triple the effort, but triple the rewards too.
To identify triple Japanese candlestick patterns, you need to look for specific formations that consist of three candlesticks in total.
They are often used to predict the next behaviour of currency prices, whether it is continuation or reversal patterns.
But we’re getting ahead of ourselves.
Let’s take a look at the popular triple Japanese candlestick patterns.
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The Morning Star and the Evening Star are triple candlestick patterns that usually occur when a particular trend is ending.
They are both reversal patterns because they show the end of one trend and the start of another.
Let’s explore each one in more detail below.
➡️ What is an Evening Star Candlestick Pattern?
The Evening Star pattern is a three-candle, bearish reversal candlestick pattern that appears at the top of an uptrend. It signals the slowing down of upward momentum before a bearish move lays the foundation for a new downtrend.
➡️ Characteristics of an Evening Star Candlestick Pattern.
The Evening Star occurs when the Japanese candlestick pattern is reversing from an uptrend to a downtrend as shown in the example below. The following occurs in this pattern:
➡️ Chart Formation
➡️ Chart Formation on Forex Chart
➡️ What is a Morning Star Candlestick?
The Morning Star candlestick is a three-candle, bullish pattern that signals a reversal in the market. The morning star can be found at the end of a downtrend, signifying a potential turning point in a rising market.
➡️ Characteristics of a Morning Star Candlestick?
The morning star occurs when the downward trend is reversed to an upward trend. The following occurs in this pattern:
➡️ Chart Formation
➡️ Chart Formation on Forex Chart
The three white soldiers and black crows are another type of three-candlestick pattern.
But rather than signaling a reversal, compared to many other patterns we’ve looked at, the white soldiers and black crows are used to confirm a trend.
Let’s explore each of them below.
➡️ What is a Three White Soldiers pattern?
Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle’s real body and a close that exceeds the previous candle’s high.
➡️ Characteristics of a Three White Soldiers pattern
Three White Soldiers pattern is found at the end of a downtrend and indicates a shift in the balance from the sellers to the buyers. The following occurs in this pattern:
➡️ Chart Formation
➡️ Chart Formation on Forex Chart
➡️ What is a Black Crows pattern?
The Three Black Crows pattern is a bearish reversal pattern used to predict the reversal of the current uptrend in a pricing chart. It usually indicates weakness in an established uptrend and signifies the potential emergence of a downtrend.
➡️ Characteristics of a Black Crows pattern
The three crows pattern, also referred to as the “three black crows”, is a reversal pattern found at the end of an uptrend. The following occurs in this pattern:
➡️ Chart Formation
➡️ Chart Formation on Forex Chart
The three inside up and down candlestick patterns are the last type of triple candlestick patterns. Both, Three Inside Up and Down, signal the reversal of a trend.
The three outside up and three outside down patterns are characterised by one candlestick immediately followed by two candlesticks of opposite shading.
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➡️ What is a Three Inside Up pattern?
The three inside up is a bullish reversal pattern that occurs at the end of a bearish trend, signalling the beginning of a potential reversal.
It consists of three candles, with the first two candles forming an inside bar that’s followed by a bullish breakout.
➡️ Characteristics of a Three Inside Up pattern
The following occurs in this pattern:
➡️ Chart Formation
➡️ Chart Formation on Forex Chart
➡️ What is a Three Inside Down pattern?
A three inside down is a bearish candlestick reversal pattern that forms at the end of an uptrend, signaling a shift in the direction of the trend.
The pattern consists of a positive candle that’s followed by an inside bar, after which the price breaks down below the open of the first candle.
➡️ Characteristics of a Three Inside Down pattern
The following occurs in this pattern:
➡️ Chart Formation
➡️ Chart Formation on Forex Chart
And that’s all triple candlestick patterns covered!
Are you feeling confident in being able to spot them on Forex charts? Is there any specific one that stood out for you?
Let us know in the comments below!
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